Question

The Laffer curve shows the relationship between tax rates and ____________ and depicts the benefits of cutting taxes when tax rates are too high.

a- government spending
b- deficits
c- surpluses
d- tax revenues

Answer 1

Answer: tax revenue

Step-by-step explanation:

The Laffer Curve was developed by Arthur Laffer and it depicts the relationship that exists between the tax rates and tax revenue.which the government collects.

The curve is typically used to show that there can be an increase in the total revenue for an economy when the tax rate is reduced.